HELP-Llyods increasing interest rate on creditcard

aerobas77

Hi
I m new at posting anything on the site and hope you can help me.
I have a mastercard with Llyods. My card is due to expire in June 2011.However I ve got 800 gbp to still pay back.To be honest I have been paying just over the minium fee(I know it s not ideal )
So I ve received a letter from Llyods saying that they will increase my interst rate from from 19.45% to 23.95%.
I ve been thinking about doing a balance transfer but I m not sure how this work.
Could someone please advise me? It this the best way to do it. I ve read that there a few offer for 0% . On top of that I m due to move flat around june so having 0% interest on a new card will be (one worry less)
I belive that I ve got a good credit score. What actually happens when if I transfer the 800 gbp from my Llyods card to for expamle MBNA creditcard?Does it mean that
1/
for Llyods I would have paid my debt off?
2/ I have got 12months to pay off 800 gbp to MBNA without any interest?
3/ could I still use my Llyods creditcard?
4/ or should I close my llyods creditcard account?
5/Does it matter if I have one visa debit card and visa creditcard?

thank for your help.:j

molerat

1. Yes.
2. Providing they offer you that facility yes.
3. Yes.
4. Up to you, depends how the available credit will impact any other credit you may want to take.
5. No, I have one Visa Debit, one Visa Credit and one Mastercard Credit.

Tixy

You could try applying for a 0% balance transfer card - whether you will be accepted will depend on both what is on your credit file and your other financial circumstances such as a income, job etc etc.

If you transfer a debt from one card to another you pay a balance transfer fee - this is typically around 3% but it varies by card. This is added to your new card balance as well as the balance transferred.

It should make no difference whether your new card is visa or mastercard. The only thing you cannot do is transfer to another card issued by the same issuer as your current one.

aerobas77 wrote: »

Does it mean that
1/
for Llyods I would have paid my debt off? yes, the balance will be cleared - you need to double check whether there is any interest charged on your lloyds card the following statement
2/ I have got 12months to pay off 800 gbp to MBNA without any interest? depends on which card you go for, if its got a 0% deal for 12 months then you have 12months to pay off the balance before you are charged interest - but you have to pay at least the minimum amount due each month on time (or you lose the 0% deal)
3/ could I still use my Llyods creditcard? yes - although its possible they may write to you to reduce your limit or even write to close the card
4/ or should I close my llyods creditcard account? depends if you are likely to want to use it
5/Does it matter if I have one visa debit card and visa creditcard? No - you can have several of each if you want (and are accepted for them)

thank for your help.:j

totallybroke_2

you have 90 days from the date of the letter to cancel your card and pay it off under the exsisting interest rate. i have done this recently it just means your account is closed and you pay it off every month as usual

aerobas77

Hi
Thank you very much for the quick reply.
I'll try to get the balance transfer first.I hope it works because ,it might sound weird but I rather have a credit card for "life little accident" than solely depend on my debit card.
I really appreciate your help Molerat, Tixy and Totallybroke!!! : o )

ManxAvenger

totallybroke wrote: »

you have 90 days from the date of the letter to cancel your card and pay it off under the exsisting interest rate. i have done this recently it just means your account is closed and you pay it off every month as usual

Mine, with HSBC, only gives me 30 days to appeal against interest change. Do they often differ according to company?

Tixy

ManxAvenger wrote: »

Mine, with HSBC, only gives me 30 days to appeal against interest change. Do they often differ according to company?

Used to only have to give you 30days - but the changes to the lending code in January have increased this so they have to give you 60days now.

If you are over 30days but under 60 and want to reject the rate then I would kick up a fuss about this.